Moody's negative outlook for Asia tech, semicon (ext: Edge)

Moody's Investors Service has a negative rating outlook for the TECHNOLOGY

and semiconductor sectors in Asia Pacific (excluding Japan) over the next 12-18 months.

Moody's said on Aug 10 that demand remained fragile for discretionary consumer electronics products, including PC and memory related peripherals, despite their recovery from a cyclical bottom in 4Q08.

Moody's vice president and senior analyst Ken Chan said memory prices, which was one of the leading indicators of the semiconductor and PC sector, had risen sharply in recent months, "but a restarting of idled capacity in response could dampen the current rally."
Chan, who wrote the report, expressed concern over the sustainability of end-user demand.